The info in this thread is mostly incorrect - error has nothing to do with the SD card you plug in the server.
This error happens because HP had a bug in earlier versions of iLo where flash memory wear levelling was not enabled. It results in a failed flash chip unless iLo was updated early on.
The SD card is Embedded - it’s NOT the one that you plug in, but rather it’s soldered down on the motherboard. You can try formatting it (there is HP support advisory on this, requires sending special XML) but chances of bringing it back to life are slim. Out of 10+ machines with these symptoms I’ve seen only two were alright after flash format. Proper fix would be to desolder and replace the chip on the motherboard…
Part number for the chip: SDIN7DP2-4G
Here’s the link to support advisory: https://support.hpe.com/hpesc/public/docDisplay?docId=emr_na-c04996097